Sydney developer Bathla has stood down 213 workers after securing temporary funding.
Why it matters: The standdown can slow work on Bathla sites and affect subcontractors, lenders and suppliers tied to its projects. Administrators say only projects backed by the participating lenders can keep moving for now.
- Bathla Group entered voluntary administration in late August after reporting about A$3.4 billion in debts.
- On Sept. 7, administrators said they secured short-term funding with five lenders that keeps Bathla operating for about two more weeks.
- The standdown affected about 213 employees, or roughly 60% of Bathla's workforce of around 350.
- Administrators said Bathla has 45 active projects and that construction can continue only on sites backed by participating lenders.
Bathla Group, a Sydney-headquartered residential developer, has deepened its crisis after administrators stood down more than 200 workers and suspended work on some projects. The company entered voluntary administration in late August after running into cashflow problems and being unable to pay debts reported at about A$3.4 billion, according to ABC.
On Sept. 7, administrators said they had secured a short-term funding arrangement with five lenders that will keep the company operating for about two more weeks. They said the funding only covers projects backed by the participating lenders, and other work has been suspended, ABC reported.
Bathla had around 350 employees before the standdown, and 213 workers were sent home, or about 60% of the workforce. Administrators said the company has 45 active projects. They also said about 2,000 homes are under construction and another 13,000 are in the pipeline.
Bathla's preliminary creditor breakdown included about A$3.08 billion owed to secured lenders, A$145 million to the ATO, A$42 million in land tax, A$130 million to unsecured creditors and about A$4 million owed to employees.
A Bathla representative said in a company update: "Our first thoughts are with our employees and the customers who have put their faith in us to deliver their dream of home ownership."
By the numbers
- A$3.4 billion - Bathla's reported debt load when it entered voluntary administration.
- 213 - workers stood down, or about 60% of Bathla's workforce.
- 45 - active projects Bathla administrators said the company has.
Yes, but: The 200-project figure is broader than the 45 active projects administrators specifically cited, so it should be treated as a separate reported estimate rather than a direct count of active sites.
What's next: The temporary funding arrangement is expected to keep Bathla operating for about two weeks.